QNet

Key Points

• QNet is a Hong Kong-based multi-level marketing (MLM) company operating globally, promoting wellness and lifestyle products through direct selling.

• The company faces widespread allegations of operating a pyramid or Ponzi scheme, with legal actions in multiple countries including India, Egypt, Rwanda, and Saudi Arabia.

• Investigations by Indian authorities, including the Enforcement Directorate and Serious Fraud Investigation Office, highlight concerns over money laundering and fraudulent practices.

• Customer and investor feedback is polarized, with some praising the business opportunity and others reporting significant financial losses and deceptive practices.

• QNet denies allegations, emphasizing compliance with legal frameworks, but ongoing lawsuits and bans in several countries raise significant red flags.

• Key figures, including founder Vijay Eswaran, are linked to controversies, with some facing arrests or investigations.

Overview

QNet, founded in 1998 by Vijay Eswaran and Joseph Bismark, is a multi-level marketing company headquartered in Hong Kong, operating under the parent company QI Group. It markets a range of products, including health supplements, personal care items, energy products, and fashion accessories, through a direct selling model. Customers can purchase products directly or become “Independent Representatives” (IRs) to earn commissions by selling products and recruiting others into the network. QNet operates in numerous countries, with a significant presence in Asia, Africa, and the Middle East, claiming to empower entrepreneurs through its business model and training programs. The company emphasizes e-commerce and positions itself as a global lifestyle and wellness brand.

Allegations and Concerns

QNet has faced serious allegations and legal scrutiny across multiple jurisdictions, primarily for operating a pyramid or Ponzi scheme. Key concerns include:

• Pyramid Scheme Allegations: Countries like Egypt, Rwanda, Sri Lanka, and Sudan have accused QNet of running a product-based pyramid scheme, where earnings are primarily derived from recruitment rather than product sales. Rwanda banned QNet in 2009, and Sudan and Syria shut down its operations for similar reasons.

• Indian Investigations: The Serious Fraud Investigation Office (SFIO) in India labeled QNet’s MLM model a “potential threat to national security” in a 2012 report. The Enforcement Directorate is investigating QNet and its franchise, Vihaan Direct Selling Pvt Ltd, for suspected money laundering, freezing 36 bank accounts in 2023. The Bombay and Delhi High Courts have described QNet’s practices as fraudulent, denying bail to Vihaan directors, including former billiards champion Michael Ferreira, on charges of cheating and forgery.

• Global Bans and Arrests: Saudi Arabia banned QNet in 2010 for theft and falsification, while Iran arrested 30 GoldQuest (QNet’s former name) members for defrauding people of over 5 trillion rials. Turkey detained 42 distributors in 2010 for unfair advantage, and Nigeria’s EFCC arrested three suspects linked to a QNet scam in 2025.

• Fraudulent Practices: Victims in India, such as those in Kerala, reported investing large sums (e.g., Rs 6.9 lakh) for promised franchises, only to receive substandard products or no returns. QNet has been accused of using fake DMCA notices and forged court orders to suppress negative online coverage.

• Terrorism Links: Unverified claims by the National Forum for Fraud Victims and Whistleblowers Association (NFFVWA) allege that QNet’s founder, Vijay Eswaran, was an LTTE operative and funded controversial figures like Zakir Naik. These claims lack corroboration from primary sources.

Customer Feedback

Customer and investor feedback on QNet is deeply divided, reflecting both enthusiastic support and significant grievances.

• Positive Feedback:

  • Some IRs praise QNet for its business opportunity and personal development programs. A user on a QNet-related website shared, “I decided to join QNet and I think that it was one of my best decisions… I would be getting a marketing and advertising commission.”

  • Another supporter, Gokul Nath, claimed, “I personally know a couple of friends who are into this for over a year and are making decent money… earning more than $6K a month.”

  • QNet’s official channels highlight testimonials of IRs achieving financial independence and success through hard work and product sales.

• Negative Feedback:

  • Victims report substantial financial losses and deceptive practices. Ashraf Mannarkkad from Kerala stated, “I transferred Rs 3.7 lakh to the company’s bank account and gave another Rs 3.3 lakh to Mujeeb directly… I came to know that the company sent those products for each investment of Rs 6.9 lakh.”

  • Ria from Hyderabad described being pressured to recruit from her contact list, leading to depression: “I was left feeling paranoid, afraid and unable to work, sinking into a deep depression.”

  • A post on X by @sashi_uchiha detailed recovering most of their investment after six months but warned against MLMs: “Here’s a thread on how I got scammed, who was involved, and why you should stay away from MLMs disguised as ‘business opportunities.’”

  • Complaints often cite high-pressure sales tactics, misrepresentation of earnings, and receiving low-value products compared to investments.

Risk Considerations

QNet’s operations present several risks for potential investors, customers, and partners:

• Financial Risk: High initial investment costs (e.g., $570-$1750 to join in some markets) and reliance on recruitment for earnings make financial losses likely for most participants. The BBC notes that MLM structures like QNet’s guarantee losses for new recruits due to the focus on recruitment over product sales.

• Reputational Risk: Association with QNet, given its history of bans and lawsuits, could harm the credibility of individuals or businesses. Negative media coverage and victim testimonies amplify this risk.

• Legal Risk: Ongoing investigations in India and other countries pose risks of further bans, asset freezes, or criminal charges for IRs and executives. QNet’s use of allegedly fake DMCA notices increases legal exposure.

• Operational Risk: QNet’s model requires significant time and effort, with success tied to recruitment rather than product quality. This can lead to burnout and strained personal relationships, as reported by victims pressured to recruit friends and family.

• Ethical Risk: Allegations of manipulating personal connections for profit and cult-like practices (e.g., chanting mantras at meetings) raise concerns about exploitative behavior.

Business Relations and Associations

QNet operates under the QI Group, with key figures and partnerships including:

• Vijay Eswaran: Founder and managing director of QI Group, implicated in controversies including a 2007 Interpol arrest in Indonesia (unverified terrorism links). He remains a prominent figure in QNet’s operations.

• Joseph Bismark: Co-founder, involved in QNet’s early establishment.

• Malou Caluza: Appointed CEO in 2019, the first female in the role, previously QNet’s first Customer Service Officer.

• Vihaan Direct Selling Pvt Ltd: QNet’s Indian franchise, heavily implicated in fraud allegations. Directors, including Michael Ferreira, faced charges of cheating and forgery.

• Pathman Senathirajah: Chief promoter in India, wanted by police and evading arrest as of 2018.

• Manchester City Partnership: QNet has been an official partner since 2014, though this has drawn scrutiny due to human trafficking and Ponzi scheme allegations.

• Transview Enterprises: One of five companies accused of involvement in QNet’s fraud in India.

Legal and Financial Concerns

QNet’s legal and financial issues are extensive:

• Lawsuits and Investigations:

  • India’s Enforcement Directorate froze Rs 137 crore in Vihaan’s accounts in 2023, investigating money laundering.

  • The Bombay High Court denied anticipatory bail to Vihaan directors in 2016, noting that QNet “fools and trains others to fool.”

  • The SFIO’s 2012 report led to prosecution orders against QNet and GoldQuest under the Companies Act and Indian Penal Code.

  • Nigeria’s EFCC arrested three suspects in 2025 for QNet-related fraud.

• Bans: QNet was banned in Rwanda (2009), Sudan (2009), Syria (2009), and Saudi Arabia (2010) for pyramid schemes and regulatory violations.

• Arrests: Mumbai Police arrested Susan Chatterjee (2014) and Aditi Mitra (2016) for their roles in QNet’s binary program. A Bengaluru resident was detained in 2015.

• Financial Concerns: No public records indicate bankruptcy, but frozen bank accounts and seized assets (e.g., Rs 1.70 crore from Chatterjee’s account) suggest financial misconduct. Victim reports of unreturned investments further highlight financial instability.

• DMCA Fraud: QNet allegedly used fake DMCA notices and forged court orders to suppress negative online content, potentially violating international laws.

Risk Assessment Table

Expert Opinion

QNet presents a complex case of a global MLM with a polished brand image but a troubling track record. Pros include its established presence, diverse product range, and appeal to entrepreneurial aspirations, with some IRs reporting significant earnings. However, cons are substantial: widespread allegations of pyramid schemes, bans in multiple countries, and ongoing investigations suggest systemic issues. The reliance on recruitment over product sales, coupled with high investment costs, aligns with characteristics of Ponzi schemes, as noted by Indian courts and international regulators. Victim testimonies and financial losses underscore the risks, particularly for inexperienced investors.

Cautionary Advice: Potential investors and customers should exercise extreme caution. Verify all claims directly with QNet’s official channels and consult legal or financial advisors before investing. Be wary of promises of quick wealth, as success in MLMs is rare and often tied to exploiting personal networks. Report suspicious activities to authorities, such as the FBI’s IC3 (ic3.gov) or India’s Cyber Crime Portal (cybercrime.gov.in). Those already involved should document transactions and seek legal recourse if defrauded.

Key Citations

• Web Sources:

  • Wikipedia on QNet: en.wikipedia.org

  • QNet Official Website: www.qnet.net

  • Webactivism Investigation: www.webactivism.com

  • BBC Report on MLMs: www.bbc.com

  • Enforcement Directorate Case: www.moneylife.in

  • New Indian Express on Kerala Complaints: www.newindianexpress.com

• X Posts:

  • @officialEFCC on Nigeria Arrests:

  • @sashi_uchiha on Personal Experience:

  • @JosimarFotball on Manchester City Partnership:

• Databases:

  • FBI Internet Crime Complaint Center: ic3.gov

  • India Cyber Crime Portal: cybercrime.gov.in